Most of the financials including private sector banks and housing financial companies were trading higher after the Reserve Bank of India (RBI) maintained a less hawkish stance and made it easire to lend, by reducing statutory liquidity ratio by 50 basis points to 20 .

The RBI further relaxed norms for housing loans by reducing risk weight in a few categories, and cut standard asset provisions on all housing loans.

Analyst at Jefferies believe a cut in standard asset provisioning and relaxation of risk weights on new higher ticket loans by RBI is a positive for housing finance segment.

While government’s interest subsidy scheme was aimed at boosting home loans in the low-mid ticket segment, the change in norms announced should lower capital requirements on mid to higher ticket home loans. HFCs focusing on higher ticket loans may be able to increase leverage, which could also boost RoE, it added.

Raw material cost forms the largest cost head in the tyre industry accounting for about 65-70% of the total. The main raw materials used to manufacture tyres are natural rubber, poly butadiene rubber (PBR), styrene butadiene rubber (SBR) and nylon tyre cord fabric. All these raw materials impart different properties, which are combined to develop tyres with particular characteristics.